It's not hypothetical. Although you are correct it's not standard, there are multiple projects doing exactly this at various stages of development, some of which have been around for years.
Handshake [1] is still very much beta but aims to replace DNS with decentralised nodes.
There are also projects like Unstoppable Domains [2] and Ethereum Name Service [3] which work right now if the browser supports them. They both use the Ethereum blockchain to sell domains as NFTs. In fact the ENS was around long before the NFT hype of today.
